atlanta. i want to start with the daily talks at the highest levels of the white house. the president, the vice president, members of the party one day closer to the treasury department's august 2 deadline. the august 2 deadline for congress to approve more borrowing and risk the government being unable to continue to pay its bills. now the republicans are saying they won't extend the so-called debt ceiling without deep spending cuts. also, they say no new taxes on anyone. on the flip side, the democrats are coming forward. they're saying that math doesn't work out. now, the last word we heard was from the republican house speaker john boehner a short time ago. here he is. >> i agree with the president that the national debt limit must be raised. and i'm glad he made the case for it today. but the american people will not accept and the house cannot pass a bill that raises taxes on job

creators. >> so that was speaker boehner a short time ago this afternoon. over the course of this last weekend, boehner informed the president he cannot negotiate a long-term debt deal he and the president broached at a secret meeting some eight days ago. that secret meeting and the prospect of higher taxes appear to have caused a revolt among house republicans. and now, boehner and his family are seeking a shorter term deal. but the president is saying no, no. now's the time to go big. get thing done for good. here he was, the president just this morning. >> i will not sign a 30 day or a 60 day or a 90-day extension. that's not an septemberabaccept approach. if it's hard now, how are the guys going to be thinking six months from now in the middle of an election season when they're all up. it's not going to get easier,

it's going to get harder. we might as well do it now. pull off the band aid, eat our peas. now's the time to do it. if not now, when? >> brianna at the white house. bring us up to date. are the high stakes talks happening right this very second? >> as we understand it, brooke, these meetings continue here at the white house. president obama with top democrats and republicans in congress. you heard the tone that the president was striking there, like a parent trying to get two kids to share. he's been saying he's bending over backwards, giving up a lot and republicans are not. of course, that is his side of the story. if you were to think of him, he has a favorite child in all of this, right? the democrats. that's his party. but you listen to john boehner, the republican, and he's saying that he isn't just tax

increases. he's talking about a battle to inform the white house and democrats not giving enough on this. the two sides are very far apart. he will continue, the president says, in meetings until they reach an agreement. >> you and i both listen to the president today. he spoke for an entire 40 minutes or so. he said today, he is bent over back backwards, those are his words, to reach a compromise with the republicans. but he's saying the other side will not budge. let's listen to this portion again, the president. >> i do not see a path to a deal if they don't budge, period. i mean, if -- if the basic proposition is it's my way or the highway, then we're not going to get something done because we've got divided government. we have democrats controlling the senate. we probably are going to need democratic votes in the house for any package that could possibly pass. so if, in fact, mitch mcconnell

and john boehner are sincere, i believe they are, they don't want to see the u.s. government default, they're going to have to compromise just like democrats are going to have to compromise. >> the president seemed to suggest, brianna, that the tea party caucus, they're the ones holding speaker boehner hostage. they will not let him compromise. what are you hearing at the white house? >> well, when you talk about from speaker boehner's, i guess, perspective, and whether he's being held hostage by republicans, i think what you have to look at is some of the numbers that tell you it's not necessarily surprising that the republicans are being unbending on tax increases, brooke. almost all house republicans, almost all senate republicans signed a pledge -- literally signed a promise -- made a public promise they would not increase taxes. so, certainly there are some tea party republicans who came in to power in this last election promising to cut government, shrink government. they're not going to give on this. some of them wouldn't raise the

debt ceiling no matter what they got in the negotiations. but certainly the wide-spread emotions among republicans is no tax increases. >> let's talk about the new taxes, the revenues, whatever word we wan to choose here. the president is proposing. we heard him say today this is -- this is the part where my ears perked. we're not talking about the immediate future, we're talking several years down the road in terms of the revenue increases. we're saying again that only the richest would have to pay them. brianna, you mentioned the year 2013? >> a couple of years down the road, what he and democrats would like to see is letting certain -- letting there be a tax increase for the wealthiest americans, yes. and i think that's something certainly that the democratic base would -- are wholeheartedly behind. they want to see that. there's democratic opposition to that. realistically, what democrats are considering is some of the

small tax loopholes and that's why we heard them targeting that in their messaging, some of the tax breaks that corporate jet owners get that the oil and gas companies get, they've been trying to paint republicans resistance to the most token of tax increases. if they're going to give up really big cuts, brook, it's spending cuts that make up some sort of an agreement, they have to get a token tax increase that say, hey, we looked out for our people when we had to agree for this there to be these cuts that mean so much to our constituents. >> $1 trillion, $2 trillion, $3 trillion. the piece -- great reading. cnnmoney.com. i want to begin with the point that brianna took to the end.

30, 60, 90-day stop gap resolution to this problem. you agree with that. you say, yes, they need to come up with a plan big enough to fix the problem. why not kick the can down the road? >> we've tried that for many years now. it hasn't left us in a very good place. right now we're at one of the important moments where one the u.s. can take the right path here and actually own up to the fiscal imbalances we have, put together a big enough package that would fix the problem. and set ourselves back on a sustainable course that would help the economy and keep the fiscal situation under control. we'll continue to punt in the past. we'll risk people turning against us making the situation more difficult to fix. and it means for all of the political battle we're going to go through to get a small deal. make no mistake, it's not going to be easy to lift the debt

ceiling whether it's a large deal or a small deal, if they put together a small deal, we have to go back and do it all over again and it will be all the harter. >> it seems when you listen to speaker boehner, he says, look, that's all great and good. but he has to have something that he can present to the house and his tea party caucus, which as brianna mentioned signed the pledge, look, we're coming to washington with the intention -- no intention to compromise. how do you get that big plan, the $4 trillion plan through this republican controlled house? >> not an easy, political thing to navigate. i'll acknowledge that. but i would say that everybody should start with the point of if we're going to have to go through this difficult exercise of lifting the debt ceiling, we might as well fix the problem. once we acknowledge the model put out there by the fiscal commission last fall, anything short of $4 trillion isn't going to fix the problem. that's the starting point. you have to look at the best

way -- we focus on how to get the numbers to add up. it's more than that. you want to think about what parts of the budget we don't need, they're ineffective, redunda redundant, outdated. focus on that first. so many ways to reform our tax code, which would simplify the tax code, bring rates down, and help to contribute the deficit reduction approach that could be good for the economy while contributing revenues. that's what we have to focus on. that could serve a purpose in the whole budget deal. >> that's how we hear the whole members of the house saying that's a sticking point from which they will not budge. everybody agrees. you hear from boehner, senator mcconnell. he says, we're not going to let the government default. we're going to make something happen. how do you take that as face

value? >> i'm relieved. it's been a roller coaster to watch. everybody should realize that bumping up against the debt ceiling and going past it is a very dangerous game of chicken to be playing. we shoulden engage in it in the first place. the leaders have changed that. they have different ideas of what it looks like. we're not going to jeopardize the debt rating. it's not at all clear how this plays out. there are a lot of compromises that have to be made. i think the point should be for politians on both sides that if we don't do this now, it becomes all the more difficult to make these changes after the election. the biggest piece here is going to be reforming entitlements. and anybody who thinks it's going to be easy to reform social security and medicare after the election, without the bipartisan cover and compromise we have now, i think it is a mistake and it will be more difficult as we push this on.

so now is the moment to try to take advantage of the debt ceiling and the requirement to do something on the budget. >> there's resistance on both sides. entitlements from the left, increases from the right. who and how much will both sides compromise. we're all watching the clock tick down. i appreciate you for coming on. i want everyone to know, people can read your work and piece, go to cnnmoney.com. now, watch this. >> many here in pakistan are seeing this latest move by the obama administration as disrespectful, as the u.s. not appreciating efforts by pakistan. >> the united states sending a strong message to pakistan. do your job better or no money. now pakistan firing back with a message all of its own, that's next. plus, just when we thought this whole uk tabloid hacking scandal is over. no. no -- news today, it's about to get a whole lot worse. back in a moment. miles per gallon on the highway.

how does it do that? well, to get there, a lot of complicated engineering goes into every one. like variable valve timing and turbocharging, active front grille shutters that close at high speeds, and friction reducing -- oh, man, that is complicated. how about this -- cruze eco offers 42 miles per gallon. cool? ♪ when an investment lacks discipline, it's never this obvious. introducing investment discipline etfs from russell. visit russelletfs.com r a prospectus, containing the investment objectives, risks, charges, expenses and other information. read and consider it carefully before investing. aflac! oh, i've just got major medical... major medical. ...but it helps pay the doctors.

pays the doctors, boyyy! [ quack ] oh yeah? what about your family? ♪ we added aflac, so we get cash! it's like our safety net... ♪ to help with the mortgage or whatever we need! so my family doesn't feel the pain too. ha! [ male announcer ] help protect your family at aflac.com. [ pigeons ] heyyy! hooo!!! [ male announcer ] want to pump up your gas mileage?

come to meineke for our free fuel-efficiency check and you'll say...my money. my choice. my meineke. pakistan tells the united states, keep your money, we don't need it. this may be the biggest hitch in the relationship between the u.s. and pakistan for a long time. the two-countries have always butted heads on the issue of dealing with militants. but, today's news actually dates back to may 2. that was the u.s. military raid near islamabad that result in the death of osama bin laden. pakistan, not happy. now, not long after that, pakistan threw out all of the meamerican and british military trainers working with the armed forces, the u.s. this time. not happy. last week, mike mullen accused the government knowing all about

the murder of a journalist critical of the government. pakistan denies that and isn't happy. fast forward -- the white house confirms $800 million, more than a third here, a third of the united states annual anti-terrorism aid package to pakistan will be stopped. this is how president obama's chief of staff describes the relationship. and i want you to listen very closely for one word, bill dailey uses more than once. >> complicated relationship and a very difficult complicated part of the world. there's still a lot of pain that the political system in pakistan is feeling by virtue of the raid that we did to get osama bin laden. something that the president felt strongly about. we have no regrets over. but the pakistani relationship is difficult but it must be made to work over time. until we get the difficulties, we'll hold back some of the money that the american taxpayers are committed to get. >> let's go, chris lawrence live at the pentagon. chris, you heard -- i'm sure

your viewers could pick up the word that they repeated more than once. complicated is what we heard. it's on its behalf. that in and of itself is complicated. what do you hear from the pentagon today? >> that it's complicated. anybody can tell you the code word for a bad relationship that you don't want to necessarily call a bad relationship. look, this is the first time that the u.s. has withheld aid in response to a direct pakistani action. but u.s. military officials say they didn't have a choice because they have 100 special operation sources there, trainers working there in the pakistanis pulled the visas for the special-ops forces. they refused to issue visas for the equipment technicians that the u.s. military feels has to be there to operate some of the equipment. >> just so i'm clear, the $800 million in aid cut is a direct

result of pakistan's expulsion of the military trainers. how many, chris, how many -- how many americans are we talking about? and what is it that they were doing? >> you know, these are active duty special forces who were there on the ground training some of pakistan's military forces. right along the tribal region where they believe a lot of the insurgents and terrorist leaders are located. but the $800 million, some of it is reimbursement. pakistan puts about 100,000 troops on that border in the frontier area. the u.s. pays them about $300 million in sort of reimburse the cost of keeping all of the troops there. some of the other dollars in that figure is actual aid, night vision goggles, spare parts for helicopters, ied disposals, things like that as well. >> i was wondering what that would have covered. we heard from a pakistani general he says today that the

two-countries that they will continue to collaborate against al qaeda what he calls the common enemy. how, now, with the aid that's going away. how might that change that relationship? >> well, the relationship is in a difficult place. probably more difficult than it has been sometime. i think peter bergen on this air used the term, too big to fail. and that's the feeling from a lot of u.s. military officials here in the pentagon. the relationship is too important on both sides to be allowed to fail. so there's intense political pressure on both sides. pakistan's military was humiliated by the osama bin laden raid. and a lot of internal pressure for them to get tough and stand tall against the united states right now. back here in the u.s. especially, with the debt and the budget and the economy such as it is, there's a lot of pressure on what we're spending in pakistan. in fact, the latest spending bill has a clause in it that says both the secretary of

defense and state have to sort of write a report on where this money is going before congress will let loose the funds that go to pakistan. so, in some ways, pakistan feels like they're reporting back sort of a parent-child relationship. you know, there's a lot of complicated things going on right now with the relationship. >> there you go again with that word, mr. lawrence, complicated. >> it is indeed. >> chris, thank you so much. i don't know if you headed to the gas stations over the weekend, did you enjoy the nice gas price slide? well, it happened -- i guess we should say, there may not be anywhere where it came from. prices at the pump back on the rise. we're at the new york stock exchange to tell us why is that? back in a moment. y one. for toys, say two. toys ! the system can't process your response at this time. what ? please call back between 8 and 5 central standard time. he's in control.

goodbye. even kids know it's wrong to give someone the run around. at ally bank you never have to deal with an endless automated system. you can talk to a real person 24/7. it's just the right thing to do. ♪ ♪ i'm back in the saddle again ♪ ♪ out where a friend is a friend ♪ [ gulps ] ♪ where the longhorn cattle feed ♪ ♪ on the lowly gypsum weed ♪ back in the saddle again see how affordable an rv vacation can be. visit gorving.com and watch a free video. go affordably. go rving.

a bit of a reality check for those of you planning to drive off to your vacation destinations. gas not going to get any cheaper after a dramatic drop of prices since may. the lundberg survey says the average price of a gallon of regular gasoline, $3.62, down a whopping penny over the past two weeks. alison cosick is in new york crunching some of the numbers for us. alison, alison? will gas prices stay around this mark? tell me, yes. or down a little bit. we'll be okay with that. >> yeah, you know what? i'll give you a yes. they're stabilizing where they are. and if you go with triple a, that's the group that releases the daily price changes. prices have gone up for six straight days. isn't it more fun to follow when prices went down every day for a month. we're not seeing that anymore. that stopped because oil prices went up. oil prices are at the break even

point for the year. gas prices are sharply higher. we all know that. you don't need me to tell you that if you filled up your tank lately. >> there was a sharp drop. it was 38 cents -- that's the drop in the gas prices from the start of may when the average was topping off around $4 a gallon. you and i were prognosticating we would see the $5 mark. thank goodness i haven't seen it yet. is there a chance of another sharp decline like that one? >> the good news is no. you talk to lundberg, she founded this big sur va called the lundberg survey. she said, quote, further dramatic drops probably are not in the cards. translati translation, the prices are going to be staying in the $3.60 a gallon range. that makes sense. we watched oil prices stabilize as well. they went up $5 in two weeks. yes. but they seem totally in a range now, holding below $100 a barrel now for more than a month. and it looks to be holding its own right there. so it's at least some good news there for you brook. >> since i got you and you've

been watching the numbers today, i understand that the stocks took a tumble today on wall street. what is the cause? are we to believe it's all of the debt talks? >> it is. you're right on the mark for everything today, aren't you? what they're calling it, it's called a wall of worry. first we have the hangover from friday's jobs reports. add that to the ongoing debt negotiations happening in washington. and you know what? maybe the biggest problem of all right now are more worries about debt in europe. italy is actually moving to the spotlight today. and it's the -- the funny thing is that the italian debt worries are pulling oil prices a little lower, a little consolation, though, because stocks are taking a huge beating. the dow right now 179 points. the nasdaq getting hammered, down more than 2%. it's a brutal day for the markets. >> alison cosick. thank you very much. >> and if you watched last week, you saw me covering space shuttle atlantis' final launch, the kennedy space center in florida. what it was like behind the

scenes, really, a dream come true for me, really. dream assignment. that is coming up next.mf %2@nah major medical. ...but it helps pay the doctors. pays the doctors, boyyy! [ quack ] oh yeah? what about your family? ♪ we added aflac, so we get cash! it's like our safety net... ♪ to help with the mortgage or whatever we need! so my family doesn't feel the pain too. ha! [ male announcer ] help protect your family at aflac.com. [ pigeons ] heyyy! hooo!!!

>> announcer: this past year alone there's been a 67% spike in companies embracing the cloud-- big clouds, small ones, public, private, even hybrid. your data and apps must move easily and securely to reach many clouds, not just one. that's why the network that connects, protects, and lets your data move fearlessly through the clouds means more than ever. [ bird chirping ] ♪ [ doug ] i got to figure this out. ♪ [ dr. ling ] i want to spend more time with my patients. [ jim ] i need to build a new app for the sales team in beijing. [ mrs. davis ] i need to make science as exciting as a video game. ♪ [ jim ] i need to push out a software upgrade. [ dr. ling ] review ms. cooper's history. [ doug ] i need to cut i.t. costs. [ mrs. davis ] i need to find a way to break through. [ jim ] i need to see my family while they're still awake. [ dr. ling ] see if the blood work is ready.

[ doug ] i need to think about something else when i run. ♪ [ male announcer ] every day, we set out to do more than the day before. at dell, everything we do, from solutions to services, gives you the power to do just that. ♪ so i.t. professionals can be more productive... business leaders, more innovative... doctors can be more connected to patients... and teachers have the power to make a difference. dell. the power to do more.

♪ i get knocked down and i get up again ♪ ♪ you're never going to keep me down ♪ >> chambawamba, anyone? the shuttle astronauts blasted away this morning by the sound of tubthumping. so after that, they got up, they headed to work -- tough day in space. their main task -- transferring equipment, spare parts, food to the international space station. now, "atlantis" docked with the space station just yesterday. the 46th and final shut toll do so. the shuttle connected with the station by doing this -- this is pretty cool. they do this back flip maneuver. there it goes. flipping through space before finally hooking on. meanwhile, nasa tells us they aren't worried about the space

junk. did you hear about this? the space junk that was hurtling that way with an old soviet satellite? they may have come too close from the space station. no big deal for the space junk today. now you know what happens in space today. my dream is covering the space shuttle launch. turned out not to be just any launch, but the historic 135th and time one. i met some amazing people down there in around the kennedy space center. i wanted to share a couple of moments with you, starting with my interview with bob crippen, the first of two astronauts to go up in the first space shuttle, sts one? you remember watching it, april 12, 1981. take a look. >> you were the test flight. you are the guinea pigs, if you will, of the first space shuttle, were you nervous knowing that or totally excite? >> totally excited. john and i had worked on the vehicle from its inception. we knew it very well. we knew the people that built it

and john and i spent a lot of time talking and touching the technicians. we had confidence in it. we knew there was a possibility of a potential problem. but we thought we could get it on the ground safely. >> let me introduce them. they are david j., both of whom are 4, kindergarteners, aspiring astronauts. cade came all the way in from colorado. high five for the commander suit, buddy. so, why -- why do you like space so much, bud? >> because like i've never been there before. and so -- >> me neither, by the way. >> so, when i grow up, i'm going to be an astronaut and i'm going to the moon. >> i always wanted to do this, i got to do it thanks to my son and grandchildren.

i'm a patriotic person and it represents what our country has been about. a real shame they're doing away with the program. i don't think they'll need to. and i -- i don't know what else to say. i'm so happy to be here. >> this is the final shot. this is the area you don't get to see. i'm on the other side of the camera. these are all of the cameras up here on the live platform. this is where you see me and you see the rest of us sitting for potentially the next couple of days. see you on tv. >> well, wasn't the next couple of days. that thing went off as scheduled. 30% chance it would. what an amazing past few days. by the way, another thing to look forward to, you're invited to a virtual dinner with the space shuttle crew. all you have to do is head to the wednesday -- put it up on the screen for you. there it is, bottom of the screen. you go to the website, you get recipes for the back yard barbecue and chow down with the crew all the way up in space.

next, the british tabloid phone hacking scandal is exploding today with new names coming out as targets of rupert murdoch's media empire. one of the names is one of britain's most powerful figures. plus, kidnapped and held captive for 18 years, jaycee dugard is speaking out for the very first time about her nightmare ordeal from being tasered by her captors to being forced to live in a shed without a toothbrush. her amazing story coming up.

well, sunday won't be the same for millions of people in britain who flipped through "the news of the world" each and every weekend. this is what they saw on the front page yesterday, "thank you and good-bye." they couldn't survive the phone hacking and phone scandals so it closed up shop. no more "news of the world," the largest selling paper that circulated more than 170 years. scandal over, right? wrong. it's wider today. it involves more people, including a former prime minister. let's go to london to my colleague, becky anderson. all of the twists and turns,

give me the latest. help me keep my media scandals straight, please? >> if you blinked today, you'd miss something. if rupert murdoch thought getting to the weekend and closing down the news of the world the sunday tabloid read by about 5 million people in this country was going to draw a line in this scandal, he was sorrily mistaken. news today that the prime minister, the former prime minister, gordon brown, may have had information by reporters not from the news of the world, in fact, but from another paper in the same stable of newspapers, that is the news international family. i've just got a tweet from -- from his wife, sara, who said so sad to learn all i am about my family's privacy. it's very personal and really hurt if it's all true. now, the allegations are that reporters from the sunday times newspaper may have tried to get information from his accountants

and his banks and tried to get medical records on one of his sons who sadly has cystic fibrosis. really a quite dreadful and scandalous part of a big scandal. wasn't just the biggest guy out there today who may be a victim of this targeting. charles and camilla allegedly told they have been targeted by the "news of the world" reporters and it seems that royal protection offices for the queen and prince phillip may have been targeted effectively. those are the allegations for information on the queen and prince phillip. quite remarkable stuff today. >> you're right. if you blinked, you would have missed it. all of the different people coming forward with all of the different allegations. i have to take you back to rupert murdoch. we know news of the world is his. correct me if i'm wrong, he wants to buy the b-sky-b, which is a british satellite broadcaster against the government's advice. the deputy prime minister waving him off this deal. will he succeed?

>> well, yeah, that's been a very interesting story today. the government have been sort of trying to move away, sort of kick this to the grass effectively. what happened today is that deal has been referred back to the competition's commissioner. now, what murdoch is effectively trying to do is buy the 61% of what is an incredibly profitable paid tv, satellite broadcaster. one of the analysts i spoke to today said if that takeover of the 61% of what he doesn't already earn of b sky b would go through would make news corp the most powerful single owner in the uk, almost double the income of the bbc. it's been kicked back. so the government effect evidencely is out of the decision-making process which will make the prime minister david cameron very happy. there's been lots of allegations he's been way too close and cozy to the murdoches. he's kicked it back to the competition, and at this stage,

it may take another three to six months for any decision on that to come through. b sky b once significantly today. newscorp's market capitalization off $6 billion since this week. >> not surprising with the twists, turns, and it rations of this story. thank you so much from london. let's talk at home. i want to go to lisa bloom, she's an attorney and author of "think." i get in here and i want you to weigh in on this. because i know a big part of your new book is about tabloid media and how you say it is dumbing us down. give me your thoughts, lee is bloom, on the whole rupert murdoch scandal? could this happen here? >> well, first of all, i do think tabloid media dumbs us down. i say hooray that one of the major tabloid papers is closing down. about 95% of readers of tabloids are women. and many college women i surveyed can name more

kardashians than wars we are in. it's a distraction from what's meaningful and important in life, that's my book, "think," as to rupert murdoch, he's facing significant consequences in britain. here in the u.s., he owns fox news and a lot of media outlets. we have the first amendment here in this country. we're very much far less inclined to have government inquiries and investigations of news organizations unless it's pretty clear there have been some crimes committed. i don't see that happening in the u.s. based on the evidence that we have right now. i don't think there'd be any repercussions on the u.s. entities, at least so far on what we know. >> you mentioned fox. i do want to ask -- murdoch is the boss of -- of news corp. which owns fox news channel. is it possible all of this is happening in the uk, could fox news at all be affected by some of the fallout? >> they could be. but only if they're engaging in the same kinds of behaviors that

news of the world reporters were engaging in, mainly hacking and other crimes. we have no evidence that that's happened here from fox news or any of the u.s. entities. so i would say no. i don't suspect any repercussions to fox news. >> now, we know that prime minister cameron, he's called for two inquiries, allegations of phone hacking and ethics and standards of journalists. we know that crimes of local law enforcement, these are crimes that they can prosecute. you mentioned the first amendment here in the states. but, what would happen, though, if it came to fruition that anyone, any journalist, illegally obtained information, hacked that -- would they be -- they couldn't be protected by the first amendment? that would be a crime. >> that's -- that's absolutely right. local law enforcement here in the united states would handle crimes committed by journalists such as hacking. clearly that's illegal. that would not be protected by the first amendment. that would be a local law enforcement issue. we wouldn't see congressional hearings trying to shut down the entire operation of a news

organization that did that because we have the first amendment here. we're protected by the media here which is a good thing. we don't like government meddling in the media. >> you twittered over the weekend, grateful for a ridiculously beautiful day here in los angeles and one big trash tabloid bites the dust. lisa bloom, thank you very much. >> thank you. and she was just 11 years of age when she was kidnapped. and then she was held by a convicted sex offender for 18 years. now, jaycee dugard is breaking her silence. she's talking about the horrifying ordeal that spanned nearly two decades. forced to live in a back yard and repeatedly raped by philip garrido. dugard tells abc's diane sawyer that she did what she had to do to survive. here's what she remembers after she was snatched off of the street. this is back in 1991. >> did they say anything? did you hear anything? >> no, not at first. after we were driving for a while, i heard the driver say,

"i can't believe we got away with it" and he started laughing. and then i blacked out again or something. it was like -- it was the most poshl mome horrible moment of your lifetimes ten. >> and as if that wasn't enough, at age 13, dugard gave birth to her first child, philip garrido forced himself on to her. this happened in the tent in the back yard. watch. >> august 13, 1994. you're how old? >> 14. >> having a baby in a back yard. >> yep. i did. >> she is -- >> i didn't know. >> you're locked up. >> yeah, i'm still -- yeah, still locked at that time. just scared. it was terrible pain. i didn't know what was going on.

hasn't seen anybody all day. >> can you imagine? jaycee dugard, now 31 years of age has written a book. it's called reque eed "a stolen goes on sale tomorrow. >> coming up next, who cares about hollywood royalty hen you have the real thing in town. prince william, wife, catherine, wrapping up the american trip. will l.a. be the same? we'll check in with matt foster who got all of the details on the duke and duchess. back in moment. a vacation on a budget with expedia. make it work. booking a flight by itself is an uh-oh.

see if we can "stitch" together a better deal. that's a hint, antoine. ooh! see what anandra did? booking your flight and hotel at the same time gets you prices hotels and airlines won't let expedia show separately. book it. major wow factor! where you book matters. expedia.

prince william and catherine leave california starry-eyed and that's what's trending today. the newlyweds are back home in britain after hanging out with celebrities. kids on skid row, max foster has travelled and covered them through canada and los angeles. he's in l.a. with more on the visit. mabs, we know that their appearances from what i read, they highlighted some of the charitable interests, helping the homeless youth, supporting

the arts, promoting the troopings. what kind of impression did they leave in l.a.? >> well, they left a good impression -- everyone is happy to be here. lots of bars around them. the public couldn't get close to them unlike in canada. there's some frustration that. but you say lots of great events for them to watch, the great carpet debate here in the aid of a young british talent is a big success. catherine's dress, alexander mcqueen. the queen's earrings, an exciting moment. inside you saw them mingling with barbra streisand, tom hanks, nicole kidman, j-lo, they seem star struck by this couple which says so much about them. they are the biggest stars in the world right now. the red carpet event really confirmed that. then there's skid row as you say with young kids sent to the palace as they thought they were at their most relaxed. and they're good with kids.

you saw the artistic side of the duchess coming out. they're going to lie low, disappear for a while because they want to focus on their marriage and go to the cottage in north wales. >> the cottage with the goats and the rural area. that sounds lovely compared to l.a., i suppose. but, you know, looking at them on the red carpet, it seemed that catherine didn't say much. i think i heard quickly she had a lovely time. do you think she'll want to come back? >> i -- i think so. they seem to be really happy here. and they -- they do -- well, william has been here on private visits. catherine's first visit. we didn't hear anything of her throughout the whole tour. she's too nervous about speaking in public even and she's -- >> you think she's nervous? >> not giving interviews. >> is she nervous? >> her private sector told me that she's coming on leaps and bounds but not quite ready to speak in public. she's got this amazing ability to look so composed at these events, the photographers are frustrated because they never

get her offguard. they never get the photo. she's concentrating and throwing herself in and she wants people, she wants reassurance that she's doing well. william is more experienced. he knows it's going well. >> she's lovely. amazing to hear she's nervous makes her that much more human. max foster, thank you very much. it's music monday here on the show. you know what that means by now. a special treat for all of you music fans, a really, really big treat if you're a neil young fan. watch this. >> it's music from the heart. it's music from the soul. and it's interplay among master musicians that were playing behind me, making me sound good. >> doesn't take too much to do that. but the music legend has a new album and it could bring back lot of memories for the long-time fans. cnn fans talk with neil young about a treasure. seafood feast for $15. start with soup, then have salad and biscuits followed by 1 of 7 delicious entrees and finish with something sweet. all for just $15.

ending soon, at red lobster. on our car insurance. great! at progressive, you can compare rates side by side, so you get the same coverage, often for less. wow! that is huge! [ disco playing ] and this is to remind you that you could save hundreds! yeah, that'll certainly stick with me. we'll take it. go, big money! i mean, go. it's your break, honey. same coverage, more savings. now, that's progressive. call or click today.

>> it is music monday. we have the legendary neil young. white it made news, it's actually old. it's call the "treasure" it's live recordings with his band in the mid '80s. and in recent year, some of the members of that band have passed away. young told us the album is a tribute to them. here you go, neil young. >> a lot of the songs were written on the road and then learned and recorded on the road. it's music from the heart, it's music from the soul and it's interplay among master musicians

that were playing behind me and making me sound good. just having that unbelievable transforming communication between them. it was very easy to do it. but when you look back on it, especially the instrumental passages, especially between rufus and joe allen and carl and spooner and ben keith, anthony crawford, these guys playing with them was like nothing else on earth. and this record shows why. i was sued by my record company. i've been told that country radio would never play it and i've been sued by the irs for having too much artistic control. and they decided i had been selling my famasters instead of working as a contract player. so i wasn't making that much money. you can imagine, a band that

wasn't playing much on the radio, that was already sued, financially, it was difficult times. we recorded erg ourselves. we dependent have a studio truck, we didn't have producers. ♪ the musicians were so great. one musician would stop and one would start and it was seemlessly, you know, flying all over the place. the amazing instrumental passages behind me or over me or

between the lines, there's just no way to predict, you just have to be mindless. it's such a special thing and we're so lucky to have it. and that's why we call it "treasure." it occupies such a special place in my life and my heart. >> mumford and sons were so star struck by neil young. i think i would be, too. take a look for any of our music monday interview, go to cnn.com/brooke. coming up, giant newborn you are talking about. >> wow. this is really going to be big. all i could see was big cheeks. >> a 16-pound baby.

you heard me. one-six. born in texas. how is that even possible? could it have been prevented? how's mom? that's what i want to know. for new people. hey ! chocolate, vanilla or strawberry ? chocolate ! chocolate it is ! yeah, but i'm new, too. umm... he's new... er... than you. even kids know it's wrong to treat new friends better than old friends. at ally bank, we treat all our customers fairly, with no teaser rates and no minimum deposit to open. it's just the right thing to do.

aflac! oh, i've just got major medical... major medical. ...but it helps pay the doctors. pays the doctors, boyyy! [ quack ] oh yeah? what about your family? ♪ we added aflac, so we get cash! it's like our safety net... ♪ to help with the mortgage or whatever we need! so my family doesn't feel the pain too.

ha! [ male announcer ] help protect your family at aflac.com. [ pigeons ] heyyy! hooo!!! >> let's go mark preston with the latest news. talk to me about these two republicans in the midst of a war of roads.

>> three republicans, two minnesotians, brooke. tim pawlenty was very critical of michelle bachmann. that's his rooil for the republican presidential nomination. let's hear what he said to say about her qualifications for president. he said that her record of accomplishment in congress is nonexistent. he said the ability to deliver a speech should not be the qualification to be president, rather there needs to be a proven ability to lead. there needs to be a public setting and drooi it to conclusion. now in the latter, he's talking about himself because he's the former governor of minnesota. how did bachmann respond? she said she's proud to be a fighter. she's proud of her record of fighting with resolve and without apology for her free marks, for our sane fiscal policies and many other things. so how would they handle each other on the campaign trail? it looks like they're starting to be very critical.

is sarah palin going to run? not going to run? we talk about this all the time. what is she going to do. well, she offered no hints about whether she's going to get in or not get in. she said her daughter bristol said she would like to see her run, but what she did say is the american people are desperate for a positive change. she says she's not so egotistical to believe that it has to be her to turn things around. but she added, she believes that she can win. for her to get into the race and for others to get into the race, the field isn't quite set. a couple names she mentioned getting in, rick perry is seriously contemplating. and chris christie, the new jersey governor. >> thank you very much. appreciate it. we have another political update

at the top of the hour. watch this. leaders in washington are playing with fire right now. your money, your loans, your 401(k), the entire u.s. economy. will they agree on a deal in 21 days? pressure is on. i'm brooke baldwin. the news is now. a young boy kept in a cage, beaten for years, then buried in cement. but a shocking report reveals more than a dozen people may have known about the abuse and said nothing. we're on it. plus does the casey anthony verdict affect how the u.s. prosecutes terrorists? one republican leader says oh, yeah, it sure does. sunny hostin is on the case. a couple of presidential candidates may be wishing they read the fine print. two republicans under fire for signing a controversial pledge involving slavery.

joe johns has the "political pop." and want to boost morale at the office? how about blowing up the boss's car? harsh words coming from secretary of state hillary clinton moments ago. she's speaking, reacting to these scenes from syria where angry pro government crowds attacked the u.s. and french embassies in the capital city of damascus earlier today. we'll listen to secretary clinton and what she had to say momentarily. i want to take you straight to the white house, developing story there. we've been following it here at cnn. kprushl talks on a potential default of the united states national treasury, the deadline, august 2. those talks happening daily now. let's go to brianna keeler. who is, who was there? what are they arguing about?

>> brook, this meeting wrapped up about 20 minutes ago, and this was president obama again with these top eight democrats and republican s in the house ad senate. two from each chamber. we knew going into this president obama told those in negotiations, i want you to come with specifics about what could be in an agreement, but there is no break through at this point, brooke. president obama, despite the fact that republicans ended up pulling out of at least the discussion point about a $4 trillion in deficit savings over ten years, they said, you know we're not going to go for that over the weekend. president obama saying he's still pushing for that. republicans and an aide to the speaker telling us what house republicans are really looking at now is a $2.4 trillion in deficit savings over the course of ten years, and the things we know generally they're discussing, of course, tax increases. democrats want some. republicans are insisting that there shouldn't be tax

increases, also entitlement reform. medicare, medicaid, social security. looking at some changes to those and some savings, i guess you could say, brooke, republicans pushing that, democrats resisting that. >> it's been a fantastic turn of events. the president is essentially accusing the republicans of playing small ball on bringing down the debt. he says this is a once in a life opportunity to really tackle the debt problem. the president saying, you know, look, this is your issue republicans. the national debt. listen. >> we have high-minded pronouncements about how we have to get control of the deficit and how we owe it to our children and grandchildren. well, let's step up, let's do it. i'm prepared to do it. i'm prepared to take on significant heat from my party to get something done. and i expect the other side would be willing to do the same

thing, if they mean what they say, that this is important. >> what is the republican response to that? >> i think also, republicans have said, it isn't just us. and that's kind of the point that they're trying to make. we heard house speaker john boehner say that democrats have not been serious about how much entitlements, medicare, medicaid, social security, need to be changed in order for there to be cost savings in the long run. so you have both sides throwing barbs at each other, brooke. and it's really in the messaging here. democrats and republicans trying to point at each other, saying they're not doing enough. really backing each other in the corner with a message and trying to win that message publicly as they try to get some of these concessions they want in these talks. with. >> we know the president and speaker boehner spoke today, saying nice things about one anoth another. remember, they played golf not too long ago. >> i appreciate what the

president said today about the need for us to come together and get this done. our disagreements are not personal and they never have been. but the gulf between the two parties now is about policy. it's not about process and it's not about personalties. >> or are they? is there some reason these two men seem to be going out of their way to say they like each other. what's going on there? >> oh, is this like a tho thou doth protest too much? i think that's what you're asking. no, i think the understanding of both sides here is that they get along well enough. i think what you're seeing is sort of president obama and the speaker, they could be a lot more sharp with each other, brooke. they could be. and i think what you're seeing here is a little bit of goodwill as both sides are stressing the importance of coming to an agreement. and so they're trying not to get personal. and i think that's what you're witnessing, both from the white house and from the speaker side.

>> the president says they're going to meet each and every day until they get this solved. they all agree, they don't want the nation to default. but i have to wonder, you said they wrapped up 20 minutes ago. when they were in there talking, what was it they were talking about? it sounds like the talks as you sort of outlined initially, they're stuck over the issues of raising the tacks on the wealthy. orb job creators as the republicans call them. >> they're stuck on the same things. people are saying okay, two weeks ago, weren't we saying they were stuck on the exact same things? i don't think it's surprising they're taking this long in the negotiations. the president even made a joke about this today during the photo op. he said oh, it's just the same photo op as yesterday except today we're wearing ties. i think he hit that on the head there. i think it's not surprising, though, that they are taking so

long to reach an agreement. we fought for everything that we can get. the white house is dealing with some democrats who liberals and progressives who feel like the white house has given away too much in negotiations in the past and they're concerned it's going to have here in their perspective. and you have hundreds of republicans. the vast majority in the house and senate who have pledged, taken a public pledge, blook, that they will not increase taxes. they do not want to give on this tax. >> alas, the negotiations continue. and my friend, you already know what you'll be covering come tomorrow. thank you. and you know, i mentioned to you just a moment ago, mentioned the secretary of state hillary clinton, using some harsh words moments ago. reacting to those attacks in damascus and syria on the u.s. and french embassies. take a listen. >> universal rights and the rule of law. despite promising dialogue and

promises of change, the syrian government has responded to the people's peaceful protest with more violence, more arrests, and more intimidation. these assaults must stop. neither the syrian people nor the international community will accept half measures or lofty speeches. whitey bulger's girlfriend is in court facing charges harboring him as a fugitive and she wants to be released from jail. he's pleaded not guilty to all charges including 19 murders. military officials in pakistan are playing down this weekend's confirmation that their aid package from washington will be considerably lighter than usual.

the white house says it is withholding $800 million in light of what it's calling certain steps pakistan has taken in the fight against militants. now, tension between the two countries here you know has risen in the weeks since the death of osama bin laden. and a disaster on russia's biggest river. at least 55 people are confirmed dead. the fate of many others still unknown after an overloaded cruise ship sank in the river. angry russian officials say the ship was not licensed to carry passengers, was overloaded by more than 50 people, didn't have enough life vests onboard, and hadn't even been mechanically serviced in more than three decades. rescuers still looking for dozens of people. how did a stun gun get onboard an air abort. a cleaning crew found it in a seat back pocket. the plane threw flew all the way from boston logan airport but had several stops throughout the day. the incident is now being investigated by the fbi.

and you can bet that the national traffic highway safety folks are going to want to make role models out of new york and connecticut. that's because drivers in syracuse and hartford are using their cell phones to talk and text less since public campaigns started warning drivers, slapping them with tickets. the warning program called phone in one hand, ticket in the other is modelled after similar seat belt use and anti-drunk driving campai campaigns. and hundreds today, saying goodbye to the texas rangers fan who fell to his death last week during am game. firefighter shannon stone lost his balance and fell some 20 feet trying to catch that foul ball. his 6-year-old saw the whole thing. all flags in stone's hometown flying at half staff today. the texas rangers have created a memorial count in honor of the firefighter and father. and more news to us just into cnn. the americans onboard the international space station just found outs their mission has been extended by a day.

that means the landing of atlantis at kennedy space center will happen on july 22. that is a day after the anniversary of the famous actually, it's two days after the famous lunar landing, july 20, 1969. the good news here from mission control, a special information of the shuttle's heat shield, not required at this time. there you go. extending the mission a little bit more in time and space. she spent 18 years in a backyard held captive by a mad man. now jaycedugae dugard is speaki out. plus, this little boy spent years in horror, kept in a cage, beaten, buried in cement, allegedly by his own family. but a disturbing new report reveals this -- many people may have known about the horrific abuse and said nothing. stay right here.

at liberty mutual, we know how much you count on your car and how much the people in your life count on you. that's why we offer accident forgiveness, man: good job. where your price won't increase due to your first accident. we also offer a hassle-free lifetime repair guarantee, where the repairs made on your car are guaranteed for life or they're on us. these are just two of the valuable features you can expect from liberty mutual. plus, when you insure both your home and car with us, it could save you time and money. at liberty mutual, we help you move on with your life. so get the insurance responsible drivers like you deserve. looks really good. call us at... or visit your local liberty mutual office, where an agent can help you find the policy that's right for you.

liberty mutual insurance. responsibility. what's your policy? [ male announcer ] time to check your air conditioning? come to meineke now and get a free ac system check and a free cooler with paid ac service. meineke. we have the coolest customers. >> jaycee dugard says she's moving on with her life, but she will never forget when she was held captive and repeatedly raped for 18 years. i know you know her story. she was 11 years of age when she was kidnapped on her way to school. that was 1981. she was held captive until two years ago when she was discovered by some very astute police officers and rescued. now she's revealing what happened to her and how she made it through what seems like an unimaginable horror. i want you to listen to what she told diane sawyer.

>> i can't imagine being beaten to death, you know? and you can't imagine being kidnapped and raped, you know? it's just -- you just do what you have to do. to survive. >> parole officers had repeatedly visited the home but never actually went into the backyard where jaycee and her two little daughters that she had by gaurido were hit hidden. in another story a child was abu abused. people knew or should have known but nothing was done. take a look at this picture. this was christian chote. in may, his father and stepmother were charged with his murder. he died in 2009 after prosecutors say were years of

abuse and neglect. they say he was beaten every day, kept locked in a three foot high dog cage. documents released last month indicate the family had been getting semiregular visits from dcs, department of child services, welfare officials for ten years. and the times of months reported yesterday, according to these reports, more than 13 people might have known of the abuse this little boy suffered, but said nothing to authorities. his body was found in a shallow grave in a trailer park in may, and i want to welcome here dr. jeff gaurdier who's gashs enough to stop through here and talk a little bit about why you're here in atlanta. but i want to start specifically with this story. we know this little boy as we mentioned in a cage beaten. and i know having read this story there was a neighbor who actually did call child protective services who came but still it wasn't enough.

why? >> well, what we're finding, many of the workers for child welfare, they're not paid very well. for them, it's a real bureaucra bureaucracy. and i've worked with some of these people. they feel completely overwhelmed by the number of cases they have, so sometimes they take short cuts. i'm not accusing anyone here, brooke, but the reality is many times they don't go into the homes. that's your job. you have to go into the home . d that's your job. one person said listen, we have to address this issue. we said to that person, i think it was a family member, if you don't want what happened to my boy to happen to you, you better not say anything. you have all these things going on -- >> it was a cousin. >> and then you have cognitive disdense.

you're living with two opposing thoughts. he's a good neighbor, he's a good dad. how can he be such a monster? then we tend to stay away from those situations because we can't resolve it in our head. >> raeing this, you have the neighbor. and she calls the child prote protective services. the neighbor is watching this entire exchange in her head and she's thinking go inside. but she doesn't go and say something. >> she may think i've done my part. now i'm leaving it to the authorities. it could be the caseworker was intimidated by this individual and was afraid to go into the home, or has so many cases, as i said before, just didn't do the complete job. either way, it's inexcusable what happened and we see this

happening with children all the time. you'd think we would learn a lesson by it, but still, it happens over and over again. >> living in a cage and being beaten and we hear about the system failing jacyee dugard. i think 60 times child protective services were called out to that house. 60 times yet nothing happened. >> again, another situation where they peeked through some fences and didn't see anything was going on, but yet there was a whole compound back there and they didn't take the time to go. a lot of it we have to blame on the training that the caseworkers actually don't get, or incomplete training. but a lot of it may be their own psychological issues in that they're afraid to confront these things because it may remind them of their own particular abuse that they went through. >> look, we're a little bit of after litigious society. look, i don't want it to come back on me.

>> you hit the nail on the head. a lot of neighbors say if i report on this person, what if i'm wrong? now we have child welfare in that person's life. or what if i report on this and this person finds out? now all of a sudden, they have an anger problem with me. i think people in this economy, in this society are so wrapped up in their own lives, brooke, there's so many things going on, they're just struggling day to day, a lot of times they feel that they can't take on the extra, what they see as a burden to take care of a neighbor. but it does take a village and we have to step forward. and they're happening all the time. >> they are. and that's why it was this one little story that we saw and we said look, we should talk about it. it's happening. jaycee dugard is getting a lot of press and thank goodness she's okay, but it's important to talk about. why are you in atlanta? >> i'm in atlanta to talk about stress, reducing stress. >> i don't know what you're talking about.

we're stressed out in the. >> we are doing it in natural ways. a lot of people are using products. i have this watch. we all have frequencies and aura. if we can increase those frequent six our natural frequencies, it makes us a little more resilient to stress and can perhaps help y0u sleep better. . >> what else in terms of stress? >> we have to look at aroma therapy. that's another natural thing one can do. >> is it working for you? >> it's working for me. you've got mine resonating frequencies working very well, brooke. but you put a little rose oil under your palms or use lavender plants, all of these things help. medication, exercise, all of these things help us as far as keeping that stress down. especially in the summer. especially in atlanta where it is hot as heck here. so it really is about taking charge of your life and not

letting the people you spoke about. >> and now coming up, two presidential candidates under fire for a pledge they signed, part of it involves slavery? find out how republicans michelm michelle bachmann and rick santorum are responding over this. celine for a sneak peek at recent winning hotel bids to find where you can save up to 60% on hotels. * we'll even email you other people's winning bids, so you'll know what price to name. *á with new hotel bid alerts, from priceline.

>> all right, deputy political director paul steihauser joining me with the political ticker.

paul, i read about this over the week, this slavery language in the marriage pledge. this was what in iowa? >> in iowa. >> and it was bachmann and santorum who signed this thing, correct? >> correct. and brooke, everybody is still talking about this. this is on the campaign trail. this is the big talker in the world of politics. let's give you the facts. first of all, iowa, why is it important? it's the first caucus state. which organization put this out? the family leader. they're a major social conser conservative group in iowa. at first, it wasn't very controversial. a pledge to protect traditional marriage. here's the problem. slavery had a disastrous impact on african-american families, yet sadly a child born into save slavery in 1860 was more likely to be raised by his mother and father in a two-parent household than an african-american baby

raised after the first after can american president. when that word got around, that's when the story got around. two candidates had already signed it, here's what bachmann said, in no uncertain terms, congresswoman bachmann believes slavery was horrible and economic enslavement is also horrible. and santorum's campaign put this out, santorum believes fs to the right thing to remove the language from the preamble to the pledge about slavery. a little damage control. a. >> a poll had bachmann tied with romney.

we're talking breaches of very, very private things in lives. this could affect how you watch tv right here in the u.s. we're live in london on this developing scandal. be right back. what's up, smart? oh, just booked a summer vaycay. ooo. sounds pricey? nah, with the hotels.com summer sale, you can find awesome deals for places nearby. interesting... wow, i'm blown away. you look great. hotels.com summer sale, save up to 30%. and get a free kindle. hotels.com. be smart. book smart.

but afraid you can't afford it? well, look how much insurance many people can get through selectquote for less than a dollar a day.

selectquote found, rich, 37, a $500,000 policy for under $18 a month. even though dave, 43, takes meds to control his blood pressure, selectquote got him a $500,000 policy for under $28 a month. ellen, 47, got a $250,000 policy for under $20 a month. all it takes is a phone call. your personal selectquote agent will answer all your questions ... and impartially shop the highly rated term life companies selectquote represents for your best rates. give your family the security it needs at a price you can afford. call this number or go to selectquote dot com. selectquote. we shop. you save.

>> in depth here on cnn. we're calling it the murdoch scandal. here's the story. major british newspaper and a big part of that rupert murdoch empire is now gone. the victim of a long-running and still growing scandal that we learned today reaches from the newsstands all the way to downing street. dan rivers, you're in london for me. now we have gordon brown, two more newspapers, phone hacking, bribery, theft of private information. dan, you blink today, you miss one of these twists and turns. it's a lot to take in. >> oh, it's an incredible story.

i think it's the most incredible story i've covered in uk politics in my career as a journalist. it has got so many different threads and twists and turn. in essence, the new lines are that gordon brown, the former british prime minister is claiming that he also was targeted by rupert murdoch's paper. not "the news of the world" the paper that closed down amid all these allegations on sunday. instead, he says he was targeted by "the sunday times" a respected up market newspaper and also the sun newspaper, a tabloid newspaper here. the bigger up the higher establishment goes, but wait, the queen according to some reports was targeted by the news of the world, corrupt police officers supposed to be guarding

her, allegedly solved details of phone numbers and her itinerary, two journalists of the "news of the world." >> wow. so from a former prime minister to now the queen. with regard to gordon brown came from the "sunday times" could that paper, could "the sun" be in trouble next? >> well, this is the first time those papers have been dragged into this scandal. they're all owned by rupert murdoch, all part of the news international stable of titles here. i don't think there's much chance of those papers closing down in the dramatic fashion "the news of the world" did. by all accounts, "the news of the world" it was so embroiled with illegal activities, it became toxic as a brand. at the moment, these are just specific allegations between these two newspapers.

it has nothing to do with rupert murdoch, which is the big kind of rumor swirling around here in uk politics is, this is not just confined to rupert murdoch's titles. >> wow, to be covering politics in the uk right now. we appreciate it. for weeks, gas prices have been falling, but suddenly the drop may be over. find out what to expect soefr the next couple of weeks, plus this. >> wow. this is really going to be big. all i could see was big cheeks. >> big cheeks, little squeezable thighs. maybe not so little. 16 pounds, folks. this little one is 16 pounds and he's only wearing his birthday suit. elizabeth cohen tells us how this guy broke a record and whether it's becoming a trend. "reporter roulette" is next.

>> gas prices aren't getting any cheaper. it's time to play "reporter roulette." we're going to go to you

alison salison alison kosik. let's talk about this day on wall street and the numbers very much affected by the debt talks. no one is coming to a final conclusion yet. >> oh, yes. stocks took a beating. it was all about that one word debt, here, there and everywhere. you know, in europe, step aside, greece. worries that the world's seventh biggest economy will default on its debt really set stocks off into a tail spin. here in the u.s., we still don't have a deal on raising the u.s. debt ceiling and apparently neither side is willing to domp mize on key issues. we're getting close to that deadline august 2. it's making investors really nervous. i've got a silver lining for you, brooke. volume is light today. which means there isn't a lot of conviction behind the selling. so it looks a little worse. >> looks like they're leveling

off. are they leveling off? and why is that? >> they are. you know, we watched prices go down every day for almost a month. now they' gone up for six days in a row. it looks like they may be holding around $3.60. around that range. it's because oil prices are stabilizing as well. you know, holding below dlrt 100 a barrel mark for more than a month now. but i tell you what, don't expect another dropoff. >> it is expensive but it's better than we were predicting. alison kosik, thank you very much. i was eight pounds, nine ounces. i thought i was a big baby. this guy's got me beat. 16 pound baby born in texas. i mean 16 pounds? >> the first thing i have to say, so that women everywhere can breathe easy. it was a c-section.

>> that's what i was asking you in the commercial. okay, so c-section, check. how does this happen? 16 pounds? >> all right, two words for you -- gestational diabetes. this mom had diabetes while pregnant and babies born to mothers with this disease tend to be large. not quite this large, but they do tend to be large. 16 pounds is bigger than your average 6-month-old. the guinness book of world records said there was a 23-pound baby born at some time. i don't know if that's accurate or not. but some people are saying this is the largest baby born in texas where they sort of do everything big. i'm not completely sure if that's true. >> of and this baby is jamichael. >> ma'am is janet, dad is michael. >> does jamichael have any health concerns? >> yes. we all look at this baby and say how cute, but i want to say that he is in the nicu, the neonatal intensive care unit. because babies this size have

blood sugars that are not easy to control. he's doing fine. breathing on his own, but special care does have to be taken with babies that size. . >> bless his heart. are doctors seeing these kinds of big babies more often? >> they are. because mothers are obese more often. so that makes them more likely to get gestational diabetes. i have to say, i spoke to a doctor who's a diabetes specialist. i said could this have been prevented? this is huge. he said i do wonder how that diabetes was being managed. she said she was on medicine. she said she changed her diet, but you really have to wonder what was going on. because usually this doesn't happen. usually they know the mom has diabetes and they give her drugs and change her diet. you kind of have to wonder what was going on here? >> mom's okay? >> mom is doing well. >> elizabeth cohen, thank you. developing rig . developing right now, a mob is attacking in syria. we have some brand-new information next. better than ev!

right now, go to priceline for a sneak peek at recent winning hotel bids to find where you can save up to 60% on hotels. * we'll even email you other people's winning bids, so you'll know what price to name. *á with new hotel bid alerts, from priceline.

sure, but let me get a little information first. for broccoli, say one. for toys, say two. toys ! the system can't process your response at this time. what ? please call back between 8 and 5 central standard time. he's in control. goodbye. even kids know it's wrong to give someone the run around. at ally bank you never have to deal with an endless automated system. you can talk to a real person 24/7. it's just the right thing to do.

some angry pro government protesters attacked both the u.s. and french embassies today in syria. and officials say they climbed over the fence. take a look at these pictures, climbed over the fence, smashed glass windows and spray painted parts of this building. no one was injured but these protesters are furious that ambassadors of the two countries visited the city of hamal last week. whoo what is this? why are these people so, so angry about this particular visit? >> last week, the syrian military built up its presence around the city and according to activists and eyewitnesses. in fact tried to enter the city, result rulting in a fair amount of bloodshed. the government has been main

taping that it's quite simply targeting armed groups. the ambassador went on thursday, spending the night there, meeting with demonstrators, speaking to some of the wounded in hospitals. the u.s. saying that this was really to show america support for syrians who are calling for democracy. the ministry of interior issues a statement saying that the u.s. ambassador while had met with saboteuring and accused him of inciting the demonstrators. and they're pointing to this visit of being evidence of foreign meddling, saying the west is deliberately trying to destabilize the regime. in fact, in three of the four days since the ambassadors have taken that visit, those demonstrations escalating today, just a sign of the growing tensions between syria and the west at this point, brooke.

the dialogue has been extended into tomorrow and the government is really billing it as being the first step towards moving towards a new and democratic syria, saying that it is going to create the felony to implement a multitude of reforms. and they had invited a number of opposition figures, but a number of them refused to go there. there had been in representation in the thousands. they quite simply are saying there can be no dialogue until the violence comes to an end, until political prisoners are released, until the military and security apparatus withdraw from various cities and towns. interestingly, though, the

opposition figures that were present very publicly also voiced that opinion. saying that this conference could not even begin to succeed as long as the violence continues. the syrian government says it does intend to implement those reforms. some opposition figures say this national dialogue is quite simply a smokescreen. >> there has been talk of reform for quite some time, as you very well know. thank you, now this. >> so like your boss? how about employees blowing up their boss's car. caught on video.

michael jackson's thriller video macon taken -- this kid is in a league of his own. you've got to see this. ♪ >> oh, my gosh.

oh! >> i don't know which is better, the kids dancing or these, you know, guys sitting in the stadium hooting over this whole thing. not only did the fans love it, so did almost 2 million people on youtube. some people got to blow up their boss's car. so that was patrick, a 1995 mitsubishi mirage that belonged to the vice president of sales for adaptive computing. the sales team got to blow up patrick as a reward for surpassing their 2010 revenue goals. all company employees and their families were invited out for the explosive celebration. the boss letting them blow up

the car. and now to wolf blitzer for a look at what's coming up. good to see you. we've got lots coming up. we've got a major interview with tony blair, the british prime minister. we talk about that. but we also talk about what's happening in syria. we has very strong words for bashar al-assad. the issues unfolding in britain, as a result of what's going on over there. was he ever hacked, his phone? what did they do to his wife. we've got a lot to talk about. another separate interview we have is the back stanny bams do to the united states. and there's a lot of tension right now in the u.s. back stanny relationship.

>> we'll see you in a couple of minutes. you may not have thought about this. could the casey anthony verdict affect how they prosecute terrorists? one says it does in a very, very bad way. sunny hostin is on the case. .bus pay the doctors. pays the doctors, boyyy! [ quack ] oh yeah? what about your family? ♪ we added aflac, so we get cash! it's like our safety net... ♪ to help with the mortgage or whatever we need! so my family doesn't feel the pain too. ha! [ male announcer ] help protect your family at aflac.com. [ pigeons ] heyyy! hooo!!!

the president will be awarding the medal of honor tomorrow to leroy arthur petrie. he lost his hand throwing a live grenade away from his fellow soldiers in afghanistan. betty ford will be eulogized tomorrow afternoon and michelle obama will attend. and two astronauts onboard the international space station will perform a space walk tomorrow to do maintenance on a cooling pump. that happens as their boss testifies here back on this planet about the successor to the shuttle program before the house science committee. okay. you know this, the casey anthony case is over. but a lot of people still talking about it. and one of those people so happens to be the top republican in the senate. he's connecting the case to terror trials. >> sunny, we're talking about mitch mcconnell.

he says the casey anthony verdict as a mistake for trying terrorists in america like the obama administration wants tooed. >> i don't think a foreigner is entitled to ault protections of the bill of rights. they should not be in u.s. courts. they should be in guantanamo and before military commissions. >> sunny, we knowed he adamantly opposed efforts to close guantanamo bay prison. what do you make of this comparison with that and the casey anthony trial? >> i don't know. i think it's comparing apples to elephants. one doesn't have anything to do with the other. and it's interesting to me because it's irresponsible, i think, for a lawmaker to question our laws, to question

our system. i mean, our federal court system has been around for over 200 years. to suggest that it doesn't work because people aren't happy with the verdict i think is extremely irresponsible. i mean, certainly his implication is that military tribunals aren't really real proceedings. that their outcome is sort of preorda preordained. so i'm very uncomfortable with that comparison. one, it doesn't make sense and two, he's criticizing the system we have. >> the justice system. let's talk about casey anthony. let's talk about caylee's law. 500,000 people have signed this online petitioni calling for ths federal law 2456 would make ate crime to fail to report a dead child within one hour or a missing child within one day. sunny is, this law -- how necessary is this law? >> well, you know, it's sad that

we need a law to tell parents to report their child missing or dead. i think it's sad that we require a law like that. i think any law that helps protect our children is important, but this is certainly overreaching. and i think it comes out of emotion and i understand the outrage. but logic trumps emotion every time when it comes to the law. and certainly it's unconstitutional federally. that won't happen. but state by state perhaps we'll see something like that. how do you determine the cause of death is always difficult. time of death is always difficult. i think we're going to need to shape this law if, in fact, it's going to come into existence in some of the states. but again, you know, logic trumping emotion every single time when it comes to the law. >> well, so many people feel strongly about it. like i said, 500,000 people signing this